National Recycling Coalition Shuts Its Doors

After a failed attempt to merge with Keep America Beautiful (KAB) last week, the National Recycling Coalition (NRC) announced it is closing its doors today and “expeditiously” filing for Chapter 7 bankruptcy, ending the organization’s 30-year run as the nation’s largest non-profit recycling advocacy organization.

“The decision was a very difficult and troubling one, but in the end, as a matter of our fiduciary responsibility, the Board was left with very few options given the organization’s cash position. Our hope – however distant right now – is that a stronger organization, with broad representation, may emerge from within our community,” said Melinda Uerling, NRC Board President.

According to Resource Recycling, “At the end of the September 2nd business day, the organization had approximately $619 in cash on hand. With legal fees associated with pursuing a filing in the tens of thousands of dollars, some board members have offered to personally donate the funds necessary for the organization to move into bankruptcy court.”

“This really is a very sad day for an organization that doesn’t get nearly the attention it deserves,” said Bob Gedert, executive director of the California Resource Recovery Association and NRC Board member. “We need to acknowledge the truly heroic efforts of everyone who worked so hard to make this organization work as long as it did.”

Along with ceasing all operations, all NRC staff will be terminated, effective as of the close of business today.

On Aug. 27, NRC members rejected a proposed merger with KAB, despite the NRC’s board of directors asserting that it would be “essential” for financial reasons.

For the merger to proceed, two-thirds of NRC members casting votes would have needed to support the merger. However, only 57 percent voted in favor. Overall, 46 percent of eligible NRC members cast votes in the online balloting, a number NRC officials described as unexpectedly high.

Those against the merger shared concerns that NRC’s independent, nonprofit voice for recycling would be lost. Opponents were concerned that Keep America Beautiful’s board includes representatives of corporations including beverage companies, restaurants, paint manufacturers, waste management and other industries.

Before its Chapter 7 bankruptcy was announced, Matthew McKenna, president and CEO of KAB said, “The voting process has been a great opportunity for KAB to reach out to [recycling organizations] and their members, and to further engage in the issues facing recyclers, businesses, individuals and government. We look forward to continuing our work through these new contacts, and providing world class resources to recycling professionals and advocates, despite the vote outcome.”